Can the Hydrodog cooperative's rules restrict or expand the franchisee's rights or obligations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions apply to each Cooperative:
(a) The Cooperative must be organized and governed in a form and manner, and commence operation on a date that we approve in advance in writing;
(b) the Cooperative must be organized for the exclusive purpose of administering marketing programs; developing, subject to our approval, standardized promotional materials for the members' use in Local Advertising within the Cooperative's area;
(c) the Cooperative may adopt its own rules and procedures, but such rules or procedures must be approved by us and must not restrict or expand your rights or obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the local advertising cooperative's rules and procedures cannot restrict or expand a franchisee's rights or obligations under the Franchise Agreement. Hydrodog may create a regional advertising cooperative in areas where two or more Hydrodog businesses are located and will establish the rules and regulations for it. Franchisees must become a member of the Cooperative for their area upon Hydrodog's request and make contributions as determined by a majority vote of the Cooperative members, subject to Hydrodog's approval.
The Cooperative must be organized and governed in a form and manner, and commence operation on a date that Hydrodog approves in writing. It must be organized for the exclusive purpose of administering marketing programs and developing standardized promotional materials for the members' use in local advertising within the Cooperative's area, subject to Hydrodog's approval.
This means that while franchisees are required to participate in local advertising cooperatives if Hydrodog establishes them, the cooperative's rules cannot override the rights and obligations outlined in the franchise agreement itself. Hydrodog retains control over the cooperative's activities and ensures that the franchisee's fundamental rights and obligations remain unchanged by the cooperative's rules.